Morning Bell: The Obama Jobs Gap Grows Again
Posted October 2nd, 2009 at 9.33am in Energy and Environment, Enterprise and Free Markets, Health Care.
Another month, another 263,000 jobs lost under the Obama administration. According to Bureau of Labor and Statistics data released this morning, the United States economy has lost 3.6 million net jobs since President Barack Obama was sworn into office and the unemployment rate has risen from 7.6 % to 9.8%. It was not supposed to be this way. The experts in the Obama administration promised the American people that the President’s $787 billion stimulus package would create 4 million jobs by the end of 2010. According to the Obama administration’s expert plan, the stimulus was supposed to create or save enough jobs that the unemployment rate would only be 7.8% by this time. Instead unemployment rose last month and is now at a 26-year record high of 9.8%.
When the Obama administration first unveiled their stimulus plan in November they claimed it would create 2.5 million jobs by the end of 2010. At the time BLS reported that U.S. economy employed about 136.1 million jobs. But by January that number fell to 134.6 million jobs. Not so coincidentally, the Obama administration upped the job-creating magic of the stimulus to 4 million jobs by the end of 2010. Putting these numbers together, we can create an objective standard to judge both the President and his stimulus by: 136.1 million plus 2.5 million equals 138.6 million; and 134.6 million plus 4 million equals 138.6 million. So the objective, Obama administration created, BLS data verifiable, jobs accountability number is 138.6 million. Today’s BLS report shows that President Obama is 7.6 million jobs short of his promise to the American people.
To close the Obama Jobs Gap, the U.S. economy would have to go through the greatest 16-month average increase in employment in modern American history. During the peak of the Reagan boom in December of 1984, the U.S. economy added 373,000 jobs a month. Obama would need to create 477,000 jobs a month. That is not going to happen.
So what went wrong? Simply put, Obama’s experts relied on some fundamentally unsound assumptions and now our nation is paying the price in lost jobs and record deficits. Harvard economics professor Robert Barro and his student Charles Redlick released some preliminary conclusions of a study, yesterday, showing that the theoretical foundation of President Obama’s stimulus, the belief that government spending creates a “multiplier effect” that expands the gross domestic product by more than the government spending itself, is not supported by existing empirical evidence.
The Federal government can stimulate the economy in the short term, not by shuffling demand across the economy through wasteful deficit spending, but by improving incentives and the general economic environment. Individuals and businesses across the nation already see tremendous opportunities for starting new businesses, for investment, for hiring new workers, for expanding into new markets. However many are holding back due to existing excessive tax and regulatory burdens. Instead of making this situation better, the Obama administration and Congress seem intent on making it worse by enacting new taxes and regulations on energy and passing health care legislation that will tax businesses for creating jobs and encourage lower wages. It is exceedingly clear that President Obama is going to fall short of his jobs promise, the only question now is how large the Obama Jobs Gap will be.
Quick Hits:
- Senior White House officials are challenging key assumptions made by the top U.S. commander in Afghanistan, Gen. Stanley McChrystal’s call for more troops in Afghanistan.
- McChrystal told an audience of military specialists at London’s Institute for Strategic Studies yesterday, to reject calls for the war effort to be scaled down from defeating the Taliban insurgency to a narrower focus on hunting down Al Qaeda.
- Breaking along party lines, the Senate rejected an attempt Thursday to allow top Army commanders to testify publicly on Afghanistan-Pakistan policy prior to President Barack Obama’s Afghanistan assessment.
- In the aftermath of President Obama’s Cash for Clunkers U.S. auto sales plunged 23%, 47% at GM, 44% at Chrysler, 8.9% at Ford, 16% at Toyota, 23% at Honda, 11% at Nissan.
- Senate Foreign Relations Committee Chairman Sen. John Kerry (D-MA) blocked Sen. Jim DeMint (R-S.C.) from travelling to Honduras on a fact finding mission, while President Obama and Congressional Democrats continue to support the deposed former leader over the democratic government, and upcoming elections.

October 2, 2009 Bill San Antonio TX writes:
So, Obama is going to continue taking us down this road of taxation and spending; even if it destroys the economic opportunities of most Americans for decades - for a relative few Americans, including the soon-to-be, amnesty-granted, former Illegals?
Why do I believe this administration will destroy this country before they will admit they are wrong - and just stop the ___ spending and taxation!
The First lady is talking about the “sacrifice” she and mega-rich Opra did on our behalf. You have to be kidding me. The Games will ensure that somehow the Feds will spend even more of our money bailing out Chicago’s massive cost over runs!
The only sacrifice I see is the massive “re-distribution” of America’s wealth on a silver platter. How about cutting taxes and spuring job creation? Oh, that’s right, the “shovel-ready” jobs in the “stimulus” plan will fix everything.
This arrogant bunch can take solice in the fact they will all be responsible for the destruction of Americans’ prosperity, wealth and opportunity. THAT will be their legacy, one of disgrace and disgust.
Now America finally knows what happens when you put Marxist-leaning idealists in total power. It must be great fun to gamble with an unlimited expense account. These people should resign for incompetence immediately.
Not only will the job los continue since we are not stimulating small businesses and banks are not lending OUR money BACK TO US, but we will continue to be fed LIES about “saving” jobs - an unmeasurable statistic.
Remember, none of this is their fault. You will hear the same excuse again at - hopefully - the end of his administration on Jan. 20, 2013. The next President will not have any money or credit.